Report: IoT device shipments to reach 1 billion this year

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Deloitte predicts 60% of connected devices will be bought for enterprise and industrial use, not consumer… yet. 

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Global shipments of Internet of Things (IoT) devices will reach 1 billion this year, 60% of which will be bought for enterprise and industry use, rather than consumers, a new Deloitte study reveals. In its 14th annual “Technology, Media & Telecommunications (TMT) Predictions” report, the research firm explored what it believes to be the realms that will have the greatest impact in 2015. Among those included the IoT, drones, 3D printing and nanosats, each areas that are heavily enabled by Atmel embedded technology.

“We are entering an extraordinary period where consumer technologies are finding increased adoption in the enterprise space. Our data indicates an exponential increase in interest in the IoT by the enterprise, which could have a profound impact on the way business is conducted,” said Eric Openshaw, Deloitte Vice Chairman. “Strong enterprise adoption of the IoT could prove to be a huge opportunity for both vendors and retail consumers alike. The amount of data we will see generated from connected devices will pave the way to measure interactions in a way not witnessed before. And, as a result, will allow organizations to understand customer behaviors and purchase patterns in a whole new light.”

IoT-specific hardware will be worth $10 billion, with consumers’ appetites for controlling their heating, lights and appliances will jump. However, the big story will be around enterprise service and industrial area, which will be valued at approximately $70 billion. The company also anticipates that global smartphone sales will surpass 1 billion for the first time this year, with screen size, speed, storage, software and design being key drivers of growth.

“We expect the pendulum of technology adoption to swing back to the enterprise with company led adoption of wearables, 3D printing, drones and the Internet of Things meeting more needs and generating higher sales for business than consumers,” TMT Risk Services Partner Dennis Moth added. “Although the focus may well be on consumer take-up — think Bluetooth-enabled roller-doors, white goods, etc. — the real value [at this moment] will be in the savings made by industry and business, with smart factories, smart homes, eHealth and telematics.”

The report finds that in 2015, enterprises will lead purchases of 3D printing and drones, signaling a shift away from the consumerization of IT predominant in the last decade that spiked with consumers’ moderate investment in wearable technology such as smart glasses. This year, drones will have multiple industrial and civil government applications, as sales of non-military UAVs will near 300,000 units and drive the installed base to over a million.

Meanwhile, over 500 nanosatellites are expected to be in orbit by year-end. According to Deloitte, nanosats are attractive for many reasons: they are cheaper than conventional satellites, lighter, easier to build and test, and easier to launch. Although increasingly capable of more complex tasks, they are likely to be additive to the existing large satellite market, and not replace it.

Turning its attention to mobile payments, Deloitte predicted that 2015 will be a watershed for the use of contactless technologies like NFC. In fact, by the end of the year, 30 million NFC-capable phones will make at least one in-store payment per month. Deloitte Lead Telecoms Partner Ed Marsden notes, “This technology is likely to exist alongside other means of payments for some time yet.”

In addition, the research firm highlights that the number of homes with broadband Internet will rise by about 2% to 725 million over the next 12 months, with average broadband speeds in most countries increasing by 20%. The gap between those with access to the fastest broadband speeds and those on basic speeds will continue to widen in 2015, providing a varied experience from home to home, especially for high bandwidth applications like streaming video.

Interested in learning more? You can explore each of Deloitte’s TMT predictions in depth here.

Hot August Nights Fever? Atmel Automotive Infographic

People love their cars. It’s one of those near universal facts. Whether they live in big cities or small rural hamlets, drive a mini or a hummer, there is just something about the sexy vroom vroom of an engine that excites people on a primal level.

Perhaps it’s the destructive force in us that is drawn to what is basically a controlled explosion on wheels. Perhaps it’s something to do with an automobile’s sleek and contoured chassis – or the human need for speed.

Or maybe, it’s because there is a certain zen to be found in tinkering with an engine. Of souping up and optimizing an already lean, mean machine, and making it purr. Somewhere in all of us is an engineer who simply wants to solve puzzles – and what greater puzzle to solve than the many moving parts to be found under the hood?

We at Atmel are especially passionate about the automotive space, having been one of the first semiconductor companies to enter the market, embracing both the productive and the creative passion from the get-go.

Telefunken (the pre- predecessor of Atmel Automotive) was founded as early as 1903, while the Heilbronn fab in Germany, acquired by Atmel in the 1980’s, was founded way back in 1960.

Atmel’s first success in automotive was (rather fittingly) the electronic ignition IC which, in 1979/1980, was installed in every Volkswagen car.

Another early milestone along Atmel’s automotive roadmap was, ironically, braking. A start-to-stop scenario, so to speak.

The market for connected vehicles is expected to grow to a whopping $53 billion by 2018, with consumers demanding more and more connectivity each year.

A study by Deloitte in 2011 determined that 46% of people between the ages of 18-24 cited connectivity as being “extremely important” to them when it came to cars, with 37% wanting to stay as connected as possible while in their vehicles. A resounding 65% identified remote vehicle control as an important feature in their next automotive purchase; while 77% favored remote diagnostics minimizing dealer visits. And let’s face it, who can blame them?

A 2013 study by Cisco went even further, positing that Vehicle-to-vehicle (V2V) communications could enable cars to detect each other’s presence and location, helping avoid accidents, lower road costs and decrease carbon emissions. The report also found that intelligent cars would lead to 7.5% less time wasted in traffic congestion and 4% lower costs for vehicle fuel.

With over 1 billion passenger cars careening through the world’s streets already, increased digitization can’t come fast enough!

Today, Atmel supplies all 10 of the top 10 tier 1 automotive electronic suppliers in the world, not only with microcontrollers (MCUs), but with touch sensor technology too. Indeed, Atmel’s latest touch innovation, the bendable, flexible, printed wonder that is Xsense, has now been fully qualified and is ready to ramp, meaning sexy curved glass dashboards are closer than you’d imagine… Not bad for a feature originally developed as a piece of wood attached to the front of a horse drawn carriage to prevent mud from splattering the driver!

Atmel is also renowned for being a leading car access supplier, meaning we make the chips that enable cool remote keyless entry (RKE) systems with immobilizers, to reduce the risk of anyone stealing your steel beauty away from you. In fact, Atmel has already delivered over 250 Million ICs for this specific application, so that’s a whole lot of key fobs! Speaking of key fobs, here’s a fun fact; holding a remote car key to your head doubles its range because the human skull acts as an amplifier.

Moving from cool keyfobs to total hotness, it’s also worth noting that Atmel sells some of the highest temperature resistant parts in the market, some of which can handle heat of up to 200°C.

Last, but certainly not least, Atmel boasts the world’s largest portfolio of Local Interconnect Network (LIN) devices, for communication between components in vehicles. The firm’s devices have OEM approvals from all major car manufacturers worldwide, which is certainly something to be proud of.

So next time you find yourself on that long and winding road, kicking into high gear and hugging those curves, spare a thought for the components, because when it comes to cars, the devil really is in the details.